News & Press: INTIX News

StubHub Gets Out of 'All-In' Pricing

Thursday, September 17, 2015   (0 Comments)

Wall Street Journal (08/31/15) Smith, Ethan

Secondary ticket seller StubHub will abandon its two-year experiment with "all-in" pricing and go back to adding 15 to 17 percent in fees at checkout. Negative reaction to all-in pricing and aggressive competition in the market caused a dive in StubHub's market share.  StubHub is still the biggest player in the $6 billion secondary ticket sales market, and new company resident Scott Cutler sees the price-display change as one of several shifts the company is making. Users will soon have the option of seeing prices displayed with fees included, but the default setting for pricing will not include the fees. StubHub stopped separating service fees in response to customer feedback, and hoped the rest of the industry would follow suit.  Since few competitors followed StubHub's lead, they appeared to have better deals than StubHub even if fees added at checkout ultimately made their tickets more expensive. StubHub ran tests in August and received a positive response from randomly selected users presented with ticket prices that did not include the service fees until checkout.  StubHub also faces competition from Live Nation's Ticketmaster, which entered the secondary ticket market in 2013, as well as from smaller competitors using aggressive search-engine optimization strategies.


Click Here to Read Article
Abstracts Copyright © 2010 Information Inc., Bethesda, Maryland USA